Since I have some few shares of Embraer stock, I can't say I am sad that Boeing is getting screwed. Much less if I think about their involvement in the arms industry.
Embraer will be launching new jets for 100 passengers, very nice ones. All the regional carriers (Continental Express, etc.) in the US fly them. They will probably be successful because of their size...there is more capacity with the big Boeings than is needed now.